Chapter 15

Project Organization,
Leadership, and Control

Project Organization
Project-Driven Organization
All work characterized through projectEach project as a separate
cost center having its own profit and loss statementTotal profit of
the corporation is simply the summation of the profit on all
projectsEverything centers around the projects

Elements of the Project Driven

Organization
The project office integrating functions for project activities, such
as a project engineer, project administratorKey functional support
support from certain key functional areas, such as product design and
analysis, system analysisManufacturing and routine
administration activities that less likely to be under direct project
controlFuture business activities such as non-project-specific
R&D and marketing are necessary for the continuation of the projectdriven organization

Projectized versus Functional

Organization
Functional Organization

Projectized Organization

Advantages

Advantages

- Efficient use of technical personnel

- Good project schedule and cost control

- Career continuity and growth

- Single point for customer contact

- Good technology transfer between

projects

- Rapid reaction time possible

- Good stability, security, and morale

- Simpler project communication

- Training ground for general management

Disadvantages

Disadvantages

- Weak customer interface

- Uncertain technical direction

- Weak project authority

- Inefficient use of specialist

- Poor horizontal communication

- Insecurity regarding future job

assignment

- Discipline rather than program oriented

- Poor crossfeed of technical information

- Slower work flow

Between projects

Source: www.codeproject.com

Fully Projectized Organization

Matrix Management

Project personnel report to both functional and project managersT

Project

TasksProject ResourcesProject ScheduleAND is the focal point for cu

The Functional Manager is responsible for:

Assignment

of functional specialistsQuality of work done with the functiona

Typical Matrix Organization

Matrix Relationship

Project Team

Characteristics of Effective
Program Manager
Need a blend of skills
Technical must understand the essentials of technologies to
evaluate whether the work done is of sufficient
qualityAdministrative must be experienced in planning, leading,
organizing, staffing, and control techniqueInterpersonal the
ability to inspire, negotiate, and persuade others very important;
project managers need a good understanding of conflict resolution
methods

Customer Communications

Learning Path

oodman, and Michael Stahl, Modern Man

Project Manager's Scope and

Responsibilities

Sets project priorities relative to other activitiesPrimary point of

Project Manager's Scope

Responsible for design reviewsResponsible for configuration an

Scope creep the tendency

For the project scope to expand
Over time (by changing
Requirement, specification, and
priorities

Characteristic Associated with

Success

Commitment of parent organization, project manager, and c

SchedulesBudgetTechnical Performance
Frequent FeedbackAdequate ControlPublic Support

Characteristic Associated with

Success

Reduced Bureaucratic Complexity (i.e. Red Tape)Judicious u

Satisfied Customer

Characteristics Associated with

Failure

Inadequate project manager skillsPoor customer coordination

Human Factors and the Project Team

The principle and practice of good, general management
also apply to the management of projectPM face technical
problem with a human dimensionProject professionals tend
to be perfectionist difficult to meet under normal
condition (professionals want to keep improving and thus
changing)Another problem is motivating project team to
accomplish the work

Human Factors and the Project Team

Organizing the team's work bringing people together
and make them contribute their effort to the same objective
does not mean that they will behave like a teamProject
success will be associated with teamworkAnother
behavioral problem for the PM is interpersonal conflict

Managing Conflict
Seven potential conflict sources:
Conflict over schedulesOver project priorities, including conflict
over sequencing of activities and tasksOver work-force
resourcesOver technical opinions and performance tradeoffsOver administrative proceduresPersonality conflictOver
cost and the funds allocated to functional support groups

Methods of Conflict Management

Withdrawal, or retreat from actual or potential
conflictForcing one's viewpoint at the potential expense of
the other partySmoothing, or emphasizing the points of
agreement and deemphasizing areas of
conflictCompromising or negotiating, each party must give
up something but satisfiedConfronting or problem solving,
focus on the issues, consider alternatives, and look for the best
overall solution

Conflict can be handled in several ways

Conflict avoiders do not make successful project
managerCompromise appears to be helpfulGently
confronting the conflict is the method of choice

The project manager did not flinch in the face of

negative interpersonal feelings when listening to
differences between people.

You have to learn to listen, keep your mouth

shut, and let the guy get it off his chest

How Project Manager Handled

Difficult Conflict
Encouraged openness and emotional expressionSet a role
model for reacting to personality clashes. It was observed that a
peer would often intercede and act out a third party conciliation
role much like managerThe manager seemed to exhibit the
attitude that conflict could be harnessed for productive
endsAlthough managers usually confronted conflicts, they also
avoided face-to-face meetings when the outside pressure was
too high